How to Use SPRING to Prepare for Financial Difficulties

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By Sum Dum Guy
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Use SPRING to Prepare for Financial Difficulties

The news concerning the state of our economy is increasingly distressing. Numerous jobs are being lost from a variety of industries, a record number of homes are in foreclosure and the market is fluctuating wildly as the government pulls the levers and turns the knobs of the economy in an attempt to set things right again.

The Spring season is traditionally viewed a time of renewal as the world emerges from the doldrums of winter and prepares for a fresh start. In our current economic climate, Spring is also good time for a fresh start in our financial thinking and practices. In this article, we'll use the acronym "SPRING" as a memory device to help the reader reshape his or her financial thinking in preparation for the possible effects this economic recession may have on them.

Difficulty: Moderate

Instructions

Step 1

S is for SAVINGS
If you are not saving some money each month, the time to start is now. Storing away money is probably simplest and the best way to be ready for a major financial upset in your life. Sadly, many folks have not put this time-tested discipline into practice. Opinions vary, but it is generally thought that saving at least 10% of your income is a good idea. If you can't save 10% now, start small and build up to 10% (and beyond). Whatever you do, start saving.
Step 2

P is for PREPARATION
If you lost your job tomorrow, what would you do? Have you thought about this possibility at all? If not, now is the time to seriously consider what you might do and prepare a plan. As the saying goes, “He who fails to plan, plans to fail”. Things to consider might include: How can I reduce or eliminate my debt quickly? Should I be acquiring a new job skill? Should I be seeking a second source of income? Should I consider a move to a smaller home or a different part of the nation? All of these things and more should be pondered and discussed with your family so that you can be reasonably prepared for whatever life may throw at you.
Step 3

R is for RE-EVALUATE
If your world was turned upside by a sudden job loss, injury or reduction of income, what would you change about your life? How would your priorities change? Would you still buying the same kinds of clothing, food or services? Would the things your aspire to obtain and the things you've acquired have the same value to you? In all likelihood, a sudden upset in your financial life would make you see all these things in a very different light. Start thinking in this way now and begin living within your means.
Step 4

I is for INVEST
If you are only putting your extra money into a savings account, it is probably growing slowly and meagerly. Consider exploring additional ways to make money to work for you. Consider investing in inexpensive stocks that have potential upside value, gold or other precious metals, foreign currencies or commodities. Seek the help of an experienced friend, investor or financial adviser and start making wiser choices with your money so that you have something to fall back on in hard times.
Step 5

N is for NEEDS
As part of the re-assessment process that was discussed above, train your mind to consider each and every purchase in terms of whether it is a "need" or a "want". A need is something you must have in order to live. A want, as you no doubt suspect, is a desired thing that is not a life essential. Of course, not all wants are bad. You should be able to indulge in a want from time to time if you have the means to obtain it, but don't let those desires for wants overtake you. Using the "need/want" thought process will help you to think more clearly when making purchase decisions which will ultimately help you to spend more wisely and enable you to save more aggressively.
Step 6

G is for GIVING
No matter how dire your circumstances, there is probably someone out there who is worse off than you. This is a sobering reality. Despite our current financial hardships, we Americans are still blessed. Use the blessings you've been given and be charitable to the less fortunate by giving to your local church and/or other charities that help those with desperate needs in the U.S. and abroad.